What Does Blockchain Mean for HR and SAP SuccessFactors?
Blockchain is about validation. It’s still relatively new to the enterprise technology space and has primarily been used in banking and rare goods. However, there seem to be clear use cases for the validation capabilities of blockchain in human resources (HR). On that note, SAP has joined The Velocity Network Foundation to explore the intersection of blockchain and HR.
What are examples of how HR tech can use blockchain?
Recruiting: For recruiting, blockchain can help both the employer by helping to validate credentials and references, and applicant by providing easy access to past employment information and speeding the entire pre-hire process along. These improvements could potentially eliminate the need for third-party recruitment services. The Velocity Network Foundation is specifically working on a career credentials tool that will allow applicants and employees to own and share their verified credentials data, rather than it being controlled by the third-party service or employer
Security: With decentralized information, it’s harder for hackers to access sensitive employee data. It’s also tough to change any information, as each change must be verified and authorized along the chain.
Compliance: Audits would be a breeze. All information is already validated within the chain.
These examples are not inclusive of all that can be done within a blockchain. For further resources, check out “5 Ways Blockchain Can Revolutionize Human Resource Management” from HR Technologies and “8 Ways Blockchain Will Impact the HR Function” on Cake HR.
Why does blockchain matter for SAP SuccessFactors customers?
Blockchain can ultimately improve HR software and HR processes through validation. SAP’s connection to The Velocity Network Foundation will give it access to the latest HR-related blockchain developments, including the career credentials solution.
Meg Bear, SAP SuccessFactors VP of Product, Engineering, and Operations, tells Rizing that the vendor is working with The Velocity Network Foundation to define a roadmap for 2021 on how the career credentials tool will fit into SAP SuccessFactors modules.
“Developing a product using blockchain will provide a better user experience and empower individuals to take control of their career data and how it is shared,” says Bear. “Activities such as applying for a job, completing a gig, or taking an external course can be digitally validated as credentials and create a full profile that is portable, accurate, and trusted.”
How Does Blockchain Relate to Human Experience Management (HXM)?
Potentially integrating the Velocity Network Foundation career credentials tool is one example of how SAP SuccessFactors believes blockchain can deliver on what Bear calls SAP’s HXM promise: to create truly dynamic, employee-centered experiences that drive greater productivity and stronger business results.
Giving an employee power over their data not only may meet regulatory requirements, it can also provide a better experience overall.
Creating the most employee-centered experience possible in HR will require utilizing the latest in technology that is offered, and blockchain may soon find its way into SAP SuccessFactors to do just that.